Asset managers' Q2 net sharply up on commission income gains

Asset management firms in South Korea reported a remarkable surge in net profit for the second quarter, driven by a surge in commission income as the stock market continued to thrive. According to preliminary data from the Financial Supervisory Service (FSS), the combined net income of these firms reached 2.69 trillion won (US$2.01 billion) from April to June, marking an 80% increase compared to the previous quarter's net profit of 1.47 trillion won.

The primary reason behind this remarkable growth was the sharp rise in commission income, which increased by 38% on-quarter to 2.61 trillion won. Operating income also saw a significant upsurge, reaching 2.42 trillion won, a 79% jump from the prior quarter. The return-on-equity, a key indicator of profitability, reached 51.9% by the end of June, a substantial 20.8 percentage points higher than the previous quarter.

As of the end of June, total assets under management stood at an impressive 2,777.5 trillion won, up from 2,355.7 trillion won three months earlier. There were a total of 513 asset management firms operating in South Korea by the end of June, as reported by the FSS.